For example, Ding Sanshi released this New Year poster a few years ago-

Is it warm and inspiring? This poster was shared with China by a friend of Netease Game Department. At that time, he said: You see, Netease is still responsible. Other internet companies are laying off employees, and Netease has heard nothing.

I don't know if the flag really doesn't stand. Netease is not only moving, but also moving hard. Perhaps in order to let employees experience the feeling of being cut by cruel years, Netease's broadsword was first cut to employees. In the unprecedented layoffs of Netease, many business departments of Netease have experienced different degrees of merger, abolition and layoffs.

Recently, someone broke the news that Netease layoffs began with Netease YEATION. "It started before New Year's Eve. YEATION laid off 30-40% employees, and Netease Weiyang also laid off about 50% employees. The Education Products Department plans to lay off 300 to 200 people, and the Public Relations Department also lays off 40%. "

In the comment area of the post, Zhu Lianfa, the public relations director of real-name certification Netease YEATION, denied two rumors, saying that "Netease YEATION has never stopped recruiting people, please pay attention to the recruitment information of related positions."

In contrast, downstairs where the public relations director of YEATION denied the rumor, people on several floors claimed that they had been laid off, cursing their former employers and Ding Lei.

Think about the breach of contract of Netease Game School last year, which also happened in Netease Hangzhou, Pangu Game Department. At that time, Netease headquarters was said to be safer. Now it seems that it is not safe anywhere.

Why does Netease have to lay off employees? The stall is too big but it doesn't make money, so it is urgent to reduce staff and increase efficiency.

Now, Netease finally responded to the uproar and admitted the fact of layoffs that YEATION's public relations director dared not admit: the company is indeed optimizing its structure and will be more focused in the future. In order to further enhance the innovation ability and organizational efficiency, give play to Netease's differentiated advantages and adapt to the longer-term market competition.

At present, Netease's "structural optimization" is indeed in progress. According to insiders of Netease YEATION, YEATION has been separated from the mailbox division and upgraded to the first-level division, and Liu Xiaogang is in charge of two divisions at the same time; The Ministry of Education and Industry was also separated from Netease Hangzhou Research Institute, and the public relations department was separated from the marketing department, both of which were upgraded from the original secondary departments to the primary departments.

This is certainly a good upgrade. It stands to reason that the upgrading of a department should be more important in terms of personnel, financial power and importance. I have never seen a teacher upgrade, but there are fewer people.

Is this the legendary "ups and downs"?

At present, there has been a lot of analysis on Netease layoffs on the Internet. It is generally believed that Netease laid off employees because it has been attacking everywhere and recruiting people everywhere in the past few years. However, Netease's emerging business department, represented by Netease's e-commerce department, after three to five years of staking, has insufficient stamina, huge structure and many redundant personnel, which has greatly dragged down Netease's profitability.

To put it bluntly, it is still unknown whether layoffs will improve efficiency, but large-scale layoffs can also improve profit margins and get immediate results.

How strong is Netease's desire for profit? It is said that at present, even the drinking fountains have been dismantled, and large boilers have been added to all floors.

Huahuajun suddenly had a clever plan. Can someone give it to Shisan's boss for me?

Boss Shisan, this artifact can save you all the tap water money!

At present, Netease has many businesses, but what supports its revenue and market value is actually walking on two legs: games and e-commerce.

In Q4 of 20 18, Netease's e-commerce business revenue was 6.68 billion, with a gross profit of less than 300 million and a gross profit margin of only 4.5%.

According to the research report of Tiger Sniff.com, Netease included "freight and handling fee" (roughly equivalent to "update fee" in JD.COM) in "sales and marketing expenses". 20 15 to 20 18, with the amounts of 654.38+55 million, 504 million,1654.38+83 million and167 million respectively. If this part is included in the gross profit, Netease actually lost 273 million in Q4 of 20 18, with a loss rate of 4. 1%.

Netease's other leg, the game department's Q4 net income in 20 18 exceeded 10 billion, and its gross profit margin was 62.8%, showing a month-on-month decline.

In recent years, e-commerce accounts for about 1/3 of Netease's revenue, but it is a loss, which is a very embarrassing thing for Netease. Moreover, compared with Ali and JD.COM, the scale of Netease e-commerce is just a little finger. In 20 18, Ali's e-commerce revenue exceeded 200 billion, and its profit was close to 60 billion. 20 18 in the first three quarters, JD.COM. COM's revenue exceeds 320 billion (although the profit rate does not exceed 1%), and the giant's e-commerce revenue is 10-20 times that of Netease.

At the same time, although Netease games are still Netease's cash cow, the golden period of the domestic game market is also recognized to have passed. It should be noted that since the game version number was restored in June 5438+February last year, the website of the State Administration of Press, Publication, Radio, Film and Television has published seven batches of game version numbers, and Netease has only been approved as 1 game. As a game giant, this approved number is really shabby.

What's more, the rumor that the national authorities stop the batch number once every month or two has made the whole industry frightened. Just this month, it was reported that due to too many games waiting for approval, China would suspend its application for commercialization of new games.

Today, it was reported that Netease Games denied this statement, and said that Diablo: Eternal Life, a heavy mobile game jointly developed by Netease and Blizzard, has been successfully developed and is close to being sold in China. In this regard, Yang, CFO of Netease, once said at the conference that "some provincial and local regulators have revised the format of the submitted materials, but we do not interpret it as closing the approval of new games." But whether the rumors are true or not, it is always true that the game industry environment is much worse than two years ago.

Netease's two thighs, one of which is empty without fat and muscle, have a serious shortage of hematopoietic capacity; The other thigh is muscular, but it is always threatened by a hammer. It is also wise to lay off employees and lose weight.

I just don't know if boss Ding Can will say when he goes to Hangzhou for a meeting next year-